What is Family Economics?

what is family economicsWhen people hear the term economics, they will probably connect it to economies of the world, countries or companies. The truth is, most Canadians hardly link economics to their own finances either.

 

Understanding Family Economics

Family economics represents the health of your personal financial life on one of the things you value the most- your family. It is how you handle finances to satisfy your family needs. It is crucial to understand how your family life, the decisions you make, and spending patterns impact your overall financial health.

For example, if you have kids in competitive hockey, there are various things you need to put into consideration. Something you wouldn’t have otherwise dealt with if they were not active participants. You would need to buy equipment such as skates and change them as they grow; you would also budget for fuel to drop them every week to games and practice, not forgetting to factor in the cost of time.

 

Family Economics Legacy

What legacy would you like to leave behind for your family? While legacies are associated with worldly things such as wealth, they should leave a long-lasting impression. Critical memories, experience and growth for your kids and important lessons are part of the legacy you leave behind. But what is the trade-off? The trade-off is reducing your retirement accounts and lost opportunity on the dollars you use to create the memories.

Canadian families are now beginning to learn how to think and act intergenerationally by implementing a family banking system. The system has some rules around it, but once implemented, a parent can benefit by helping their children at every stage. On the other hand, the kids benefit by paying back to the expanding pool of capital that will return to them when the parents eventually pass on.

Family Economics Banking System

The family banking system takes family economics to a whole new level. It creates prosperity and stewardship backed by sound financial principles. Most of us are accustomed to the way traditional banks function, that we do not stop and think, “what if there are other alternatives? What if there are better ways?”  A family banking system can dramatically improve your financial trajectory in ways a traditional bank cannot.

This is a different way of thinking about your long term financial life. What’s more, when implemented,  you will receive a guaranteed cash accumulation annually, and consistent dividends can boost your compound effect over time. Creating a lasting tax-free legacy for your loved ones is one other unique benefit of this process. But with the infinite banking strategy for your family, the key is in the education and increased conversations around money that take place. To learn more on how this can be done, register for one of our webinars and watch the documentary film, “This is Nelson Nash: Creator of Infinite Banking Concept.” 

Contact Ascendant Financial today.